Audit is not like a box of chocolates, planning is key.
A majority of the IRBA audit findings are on the planning section of an audit file, which indicates a lack of understanding of the documentation requirements. Incorrect planning can also lead to over or under auditing.
Ensure that your team members understand the importance of planning and know exactly what is required on the audit file to ensure that the audit is performed effectively and efficiently.
This course explains how audits can be planned and performed effectively on Draftworx, using the software to improve audit efficiency while maintaining audit quality.
After attending this course delegates will have a thorough understanding of the following:
• Identifying the overall risk in accepting the engagement
• Drafting an appropriate engagement letter for a new engagement
• Obtaining an understanding of the entity and its environment and documenting this information in the appropriate format
• Obtaining an understanding of the entity’s information system and control activities
• Evaluating and documenting the risk of material misstatement at an overall financial statement level
• Understanding the concept of desired audit risk
• Evaluating and documenting the risk of material misstatement at the account balance level by assertion
• Evaluating and documenting the risk of fraud
• Identifying and documenting the significant risks that could result in material misstatement
• Identifying and documenting the factors that affect planning materiality and performance materiality
• Calculating and documenting a justifiable level of planning and performance materiality
• Identifying and documenting appropriate tests of internal controls, significant risk responses, required procedures, extended analytical procedures, extended tests of detail and sampling.
Please note: This course is based on a practical case study
The delegates will be provided with a case study including all the information necessary regarding the client to perform the planning section. They will then need to perform the following planning sections:
• Engagement continuance procedures
o Identifying the risk of the engagement
o Identifying ethical dilemmas
o Whether pre-conditions are met
o Should the engagement be accepted
• Assessing the engagement letter
• Obtaining an understanding of the entity through discussions with those charged with governance, including fraud questionairres.
• Identifying the Financial Statement Areas to be audited and the relevant information regarding these
• Calculating the overall and performance materiality for the engagement
• Performing risk assessment
o At Financial statements level
o At Assertion level for every FSA
• Documenting system descriptions and performing walkthroughs
• Deciding on an audit strategy
• Documenting the audit plan
• Documenting all of the above in the Draftworx software
Auditors
Second year SAICA trainees
Third year SAICA trainees
Audit mangers
Audit partners
Delegates must bring their own computers with Draftworx already loaded. All software must be fully licensed. All other material and stationery will be provided.
